The telecommunications industry and economic growth: how the market structure matters

0449497 - NHU-C 2016 RIV NL eng J - Journal Article
Jerbashian, Vahagn
The telecommunications industry and economic growth: how the market structure matters.
Economic Modelling. Roč. 51, December (2015), s. 515-523. ISSN 0264-9993. E-ISSN 1873-6122
Grant - others:UK(CZ) GAUK 79310
Institutional support: PRVOUK-P23
Keywords : telecommunications industry * market structure * economic growth
Subject RIV: AH - Economics
Impact factor: 0.997, year: 2015

This paper presents an endogenous growth model where the telecommunications industry is the engine of growth. In such a framework, it analyzes how the market structure of the telecommunications industry can matter for its contribution to long-run growth. It shows that policies which increase the number of firms and/ or toughen competition imply higher innovative effort in the telecommunications industry and strengthen its contribution. Modeling entry into the telecommunications industry, this paper also shows that the entry either stops after a number of firms have entered or continues permanently. In the long-run, it is socially optimal to have permanent entry. This can necessitate subsidies to entry into the telecommunications industry.
Permanent Link: http://hdl.handle.net/11104/0251047